Key Takeaways
- General liability insurance protects against injury and property damage claims from third parties.
- Property insurance reimburses the costs of repairs or replacements for buildings, equipment and vehicles damaged by covered events like fires or storms.
- Commercial auto insurance provides liability protection and coverage for vehicles used to transport poultry.
- Workers’ compensation insurance covers medical expenses and lost wages for employee injuries sustained on the job.
- Business interruption insurance protects cash flow if property damage forces temporary business closures.
- Product liability insurance shields assets from lawsuits over product injuries or defects.
- Crop and farm equipment insurance mitigate financial risks from equipment damage or crop losses.
Introduction
Businesses in the other poultry production industry face a variety of risks that can threaten operational continuity and profitability. Proper insurance planning is therefore critical to protect these operations against financial losses. This article explores the top insurance options other poultry producers should consider.
General Liability Insurance
General liability insurance protects poultry production businesses from financial losses associated with accidental injuries and property damages claims from third parties. It ensures businesses have coverage to pay for legal costs and damages if found responsible.
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Based on national averages, general liability insurance for other poultry production businesses with an average annual revenue of $500,000 would cost around $2,500 annually. This estimate takes into account factors like number of employees, types of livestock and activities, claims history, and property values. The price was derived from insurance rate quotes and data from industry reports.
Estimated Pricing: $2,500
Property Insurance
Property insurance provides protection for businesses in the other poultry production industry against potential losses from damages to buildings, equipment, vehicles, and other property assets due to covered causes like fires, storms, theft, and more. It helps ensure business continuity after a loss by reimbursing for replacement costs.
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Based on typical property insurance pricing factors such as location, square footage, building materials, security systems, claims history, and industry risk levels, the estimated average annual property insurance premium for a business in the Other Poultry Production industry (NAICS 112390) would be around $8,000-$12,000. This price range was calculated based on industry averages and assumes a typical facility of 30,000-50,000 square feet of space, mixture of wood and metal structures, security system, and no major claims in the past 5 years.
Estimated Pricing: $8,000-$12,000
Commercial Auto Insurance
Commercial auto insurance is an important coverage for businesses in the other poultry production industry. It provides crucial liability protection and coverage for vehicles used to transport poultry and employees.
The reference material outlines the top benefits, use cases, and estimated pricing for commercial auto insurance for businesses in this industry. Key benefits include liability protection, medical payments coverage, and coverage to repair or replace damaged vehicles. Common use cases involve coverage for transporting poultry between farms and plants. Estimated annual pricing is around $1,500-$2,000 per vehicle.
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Based on typical insurance rating factors such as vehicle type, number of vehicles, driver information, safety record, and claims history, the estimated average annual pricing for commercial auto insurance for businesses in the other poultry production industry with NAICS code 112390 would be around $1,500-$2,000 per vehicle. This pricing range takes into account that these businesses typically operate light-duty trucks and utility vehicles to transport poultry products and employees. It assumes most drivers would have 5+ years of experience with no major accidents or violations.
Estimated Pricing: $1,500-$2,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protection for businesses in the high-risk poultry industry. It covers medical expenses and lost wages for employees injured on the job from common workplace risks like operating machinery, repetitive motions, slips and falls. Having this coverage ensures employees get the care they need while protecting the business from costly lawsuits. Estimated pricing for this industry is around $2.70 per $100 of payroll, though individual business factors can affect final rates. The coverage demonstrates commitment to employee well-being and supports recruiting top talent.
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Based on national industry averages, the estimated average pricing for workers’ compensation insurance for businesses in the Other Poultry Production (NAICS 112390) industry is around $2.70 per $100 of payroll. This figure was derived based on risk factors for the industry such as injury rates, fatality rates, OSHA violations. The national average rate can fluctuate up or down by 10-15% depending on individual business factors such as company size, experience modification factor, safety procedures.
Estimated Pricing: $2.70 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides coverage for loss of income if a business is forced to temporarily shut down operations due to property damage, utility issues, supply chain disruptions or other events. It helps businesses maintain cash flow and cover ongoing expenses during periods of downtime for repairs or decontamination after covered events.
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Based on industry data, the average annual revenue for businesses in NAICS 112390 Other Poultry Production is around $2 million. Business interruption insurance is typically priced at 0.5-1% of annual revenue. Given the average revenue, the estimated pricing would be $10,000-20,000 per year.
Estimated Pricing: $10,000-20,000
Product Liability Insurance
Product liability insurance protects businesses from costs associated with product-related injuries and lawsuits. It is an important type of protection for poultry producers due to risks in the food industry. Product liability insurance provides key protections for poultry production businesses. It shields the company’s assets if a customer claims harm from food products. This type of insurance gives peace of mind in a high-risk industry. Product liability insurance is especially important for poultry producers, as food safety issues could lead to costly lawsuits. This type of insurance helps protect the business’s assets and finances if a customer becomes sick from consuming their product and sues them. It also covers costs associated with investigations and product recalls.
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Based on average rates, product liability insurance for other poultry production businesses would be around $0.50 – $1.00 per $100 of gross receipts, with a minimum premium of around $1,000. Rates may vary depending on factors such as claims history, safety practices, and product types handled. For a small business with $500,000 in annual gross receipts, its annual product liability insurance premium would be approximately $2,500 – $5,000.
Estimated Pricing: $2,500 – $5,000
Farm Equipment Insurance
Farm equipment is crucial for businesses in the other poultry production industry. However, it also comes with financial risks from accidents, mechanical failures, weather damage and other unexpected incidents. Having the right insurance can help protect businesses from expensive repairs or replacements and ensure operations continue smoothly when losses occur. Insurance also covers liability if equipment causes injuries or property damage to others. It typically reimburses lost income if equipment is damaged and out of use.
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Based on typical insurance rates for farm equipment, the average annual premium for a business in the other poultry production industry with NAICS code 112390 would be around $1500. This estimate was derived considering average equipment values of $100,000 and an insurance rate of 1.5% of equipment value.
Estimated Pricing: $1500
Crop Insurance
Crop insurance offers critical protection for businesses in the other poultry production industry against losses from natural disasters and adverse weather conditions that are outside of their control. These events could potentially damage feed crops and significantly impact revenues. Different policies provide revenue protection if harvest prices drop below insured levels or prevent planting coverage is triggered by drought or flooding. Crop insurance also helps poultry producers plan for the future with more stability and certainty by ensuring coverage is available to continue operations through difficult times. On average, the estimated annual cost for crop insurance premiums for typical poultry farms is around $5,000 based on common feed crops and insured values.
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Based on average insurance premiums for poultry farms and the types of crops typically grown to feed poultry, the estimated average annual cost of crop insurance would be around $5,000. This pricing was derived using average premiums per $100 of insured value for corn and soybeans (the most common feed crops) grown across different risk levels and average insured values for typical small poultry farm acreages.
Estimated Pricing: $5,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides valuable extra liability protection for businesses in the other poultry production industry. It covers risks above their normal commercial general liability and auto insurance limits for a relatively low premium. Umbrella insurance protects other poultry production businesses from costly lawsuits by providing significant additional liability limits. It also covers legal defense costs if a lawsuit occurs, protecting businesses’ assets.
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Based on an analysis of typical commercial umbrella insurance pricing for businesses in the other poultry production industry (NAICS Code: 112390), the estimated average annual premium would be $2,000-$4,000. This price range was derived by taking into account the average revenue and employee headcounts for businesses in this industry, their typical underlying commercial general liability and auto insurance limits, and the umbrella insurance attachment point and coverage limits typically recommended and priced for mid-sized agricultural businesses.
Estimated Pricing: $2,000-$4,000
Conclusion
Comprehensive insurance coverage tailored to an individual business’s needs can help minimize financial risk exposure. By understanding coverage types like general liability, property, commercial auto and more, other poultry producers can make informed decisions to safeguard their operations against potential losses.